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Inane Wanderings
A blog about....well about....something. Really.
Why Gaia WANTS This Runaway Inflation
We know that this inflation, the likes of which I haven't seen in my going on seven years here, is pissing off the user base.

But if you look at it from Gaia, Inc.'s point of view, it's a *wonderful* thing. At least short term.

Let's look how the money flows.

But first, let's simplify. I'm going to use the terms Gaia Cash and Real Money interchangeably, because one begets the other, and I'm going to get real tired real fast of typing "users give Gaia Real Money to buy Gaia Cash to buy <whatever>". I know full well that Gaia Cash Is Not Real World Money.

Users give Gaia Real Money to buy items that are available only for Gaia Cash. Some users actually want these items to keep and use and make pretty pixels with. But there aren't enough of them to keep the Gaia Powers That Be happy.

There is another class of users that buy these items solely for resale. What spurs this class of users to buy more? The ability to sell these Gaia Cash Only for ridiculous amounts of gold. These users LOVE inflation, which means Gaia, Inc. LOVES it, because the more they buy the more Taco Bell value meals they can afford.

But there's a hitch here. The users who are buying with massive amounts of gold need to get that gold from somewhere. Traditionally, the users could obtain massive amounts of gold from massive amounts of playing zOMG or Booty Grab. As well all know, these are capped at a ridiculously LOW level for the cost of items these days.

So where are the users going to get the gold to pay the ridiculous prices in the MP? Because someone IS paying those prices, or the prices would be dropping.

From Gaia, Inc., of course. Gaia is more than happy to sell them the gold via Flynn's a**. (It never leaves the shops for more than a few days. I don't expect that to change any time soon. Or ever, actually.)

So Gaia sells overpriced pixels for real world money so the buyers can sell it for loads of gold, and sells the gold to the buyers so they can pay way too much gold for the overpriced pixels.

Yup. The users are a cash cow and Gaia's milking us from both sides.

The only way that Gaia loses here is if users stop buying. Or they leave. One begets the other, and given that I saw a number in 4 digits for user count when I logged in this morning, I would say that a certain amount of this is happening.

BTW, that Halloween event "gold sink"? With 8 Billion "donated"? Given that one of the figures I saw is that Smashblox paid tournaments are pumping 2.5 Billion gold into the economy daily If that figure is even near correct, that means the amount donated to date represents roughly 3.2 days' worth of Smashblox ALONE.

Gold sink, my not inconsiderable a**. It's not even a gold dixie cup, given the gold firehoses that Gaia's turned on.

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